Supreme Court to hear second case against Biden’s student loan forgiveness plan
Young-Bin Lee/Staff Photographer
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The United States Supreme Court announced Monday it will hear a second case against President Joe Biden’s student debt forgiveness plan. The case will be heard alongside Nebraska v. Biden.
In the new case, complainants Myra Brown and Alexander Taylor — backed by The Job Creators Network Foundation — allege that the Biden administration’s forgiveness plan is illegal because it did not have a public comment period as required under the Administrative Procedure Act. The act lays out the process to develop and issue regulations, according to the Environmental Protection Agency.
Both Brown and Taylor have student loans. But because Brown’s are “held by commercial entities” instead of the Education Department, she isn’t eligible for relief, U.S. Justice Department Solicitor General Elizabeth Prelogar wrote in a statement.
It is not clear whether the two cases will be consolidated, The Hill reported, and arguments could be heard in February.
The JCNF, a “conservative-leaning group advocating for free enterprise,” previously sued Major League Baseball for moving its All-Star game from Georgia in protest against the state’s voting laws. The MLB called the since-withdrawn lawsuit “frivolous.”
In August, Biden announced the cancellation of $20,000 in student debt for Pell Grant recipients, as well as $10,000 for non-Pell Grant recipients. At the time, people were able to submit applications for relief until Dec. 31, 2023.
The Supreme Court announced on Dec. 1 that it would hear the original case against the student debt forgiveness plan, which was filed by six states: Nebraska, Missouri, Arkansas, Iowa, Kansas, and South Carolina. The six states argue Biden overextended his executive powers and caused a loss in future tax revenue for the states.
The New York Times wrote on Dec. 1 that the case was the “most serious threat” against Biden’s plan.
Dan Urman, director of the Law & Public Policy minor at Northeastern University, said in an interview with News@Northeastern that he would be “very surprised” if the court sided with Biden in the original case for student loan forgiveness. Currently, the court has a 6-3 conservative majority.
Under its current makeup, the court has ruled to erase the constitutional right to an abortion in Dobbs v. Jackson Women’s Health Organization and limited the power of the federal Environmental Protection Agency in West Virginia v. EPA.
“I really think the Supreme Court is going to say, ‘this is Congress’ job, not the executive’s,’” Urman said. “They’re going to say… this is beyond what the law allows.”
On Oct. 21, a federal appeals court put the program on hold while it was still discussing Nevada v. Biden. The Supreme Court has refused to lift the pause set in place, and as of Dec. 12, it is ongoing.
To combat the pause, the Biden administration extended its moratorium on student loan payments again. On Nov. 22, when Biden extended the moratorium through June 30, 2023, he wrote on Twitter that he was confident in the legality of the student debt relief plan.
I really think the Supreme Court is going to say, ‘this is Congress’ job, not the executive’s. They’re going to say… this is beyond what the law allows.Dan Urman, director of the Law & Public Policy minor at Northeastern University
In a late November email to eligible borrowers, Education Secretary Miguel Cardona wrote that the ongoing lawsuits are “meritless,” Spectrum News NY1 reported.
“The Biden-Harris Administration is committed to helping borrowers as they recover from the pandemic,” Cardona wrote. “Education is a great equalizer.”
Published on December 12, 2022 at 11:02 pm
Contact Kyle: kschouin@syr.edu | @Kyle_Chouinard